General Insurance Newsletter Friday 19th July 2024

Insurance News

The International Underwriting Association (IUA) stated that London market insurers are crucial in developing new and advanced air mobility technologies over the next few years. The organisation requested a robust certification process, one that prioritises safety and access to data so underwriters can effectively analyse risk and liabilities. IUA's comments were an official response to a public review of the law around autonomous flight conducted by the Law Commission. The new and advanced air mobility technology includes larger aviation drones that will be used to deliver cargo and vertical take-off and landing vehicles carrying passengers for air taxi services. (Grant Funtila, 18/7/2024, Insurance Business UK, 'Insurers to play crucial part in future of aviation technology, says IUA')

Storms Babet, Ciaran, and Henk significantly impacted UK households and Flood Re's profits, causing a drop from £109.8 million last year to £23.8 million. Despite this, Flood Re highlighted positive developments, noting it handled 30% of all claims since inception in 2023/4, with a third from these storms. Policies ceded to the scheme rose by 9% to 288,567, and 560,466 households have benefited since 2016. Additionally, 99% of high-risk households can now get quotes from 15+ insurers on comparison websites. (Paul Lucas, 18/7/2024, Insurance Business UK, 'Flood Re sees huge profit slump in the face of record claims')

Global specialty re/insurer SiriusPoint and Service First Insurance, a managing general agent (MGA) providing insurance solutions for the commercial and business markets in Ireland, have announced a strategic partnership on a property owners program. The distribution partnership with SiriusPoint will enable Service First to underwrite commercial property risks up to €10 million. As part of the collaboration, Service First will manage all aspects of the insurance lifecycle, from underwriting to claims, in partnership with SiriusPoint. (Kenneth Araullo, 17/7/2024, Insurance Business UK, 'SiriusPoint partners with MGA for property owners program in the Republic of Ireland')

QBE Insurance has announced its new policy, QCyberProtect. It's designed to enhance cyber resilience for a broad range of clients worldwide. The new policy aims to provide tailored coverage for losses arising from current and emerging cyber risks. These include network security, privacy liability, IT and non-IT business interruptions, and reputational loss. Through QCyberProtect, QBE wants to provide cyber insurance for different types of organizations, including mid-sized companies that rely on outsourced IT departments to global corporations with complex and large-scale IT systems. (Grant Funtila, 17/7/2024, Insurance Business UK, 'QBE reveals global cyber product')

Brokerbility, the community network of independent brokers, has announced that Road Angel Group has joined as an Affiliate Partner member. Road Angel Group develops and provides technology supporting dash cameras, speed awareness, integrated car stereos, and Thatcham Approved Stolen Vehicle Trackers. Road Angel also offers a nationwide supplied and fully fitted service. With this announcement, Brokerbility members will now collaborate with Road Angel to provide fleet clients with advanced technology that can enhance risk management programmes and potentially reduce premiums. (Kenneth Araullo, 17/7/2024, Insurance Business UK, 'Brokerbility further grows Affiliate Partner program with newest member')

Renewable energy project underwriter GCube Insurance (GCube) has announced the formation of a new consortium. This group, comprising six Lloyd’s syndicates, aims to provide battery energy storage system (BESS) developers and asset owners globally with up to $100 million in ‘A-rated’ insurance capacity. The consortium, led by underwriters, was developed as a response to the growing demand from brokers and the BESS market. It is designed to offer the necessary lead capacity and expertise to support the industry as it becomes a key component of the global energy mix. (Kenneth Araullo, 17/7/2024, Insurance Business UK, 'GCube launches new consortium')

Following the negative experience variance in the first quarter of 2024, global re/insurer SCOR has announced that it has accelerated its annual life and health (L&H) reserving assumptions review and included a best estimate view in the Q2 2024 results. According to SCOR, the Q2 2024 L&H insurance service result (ISR) is expected to be approximately €-0.4 billion. This outcome is driven by updates on reserves and continued negative experience variance, partly offset by positive effects from portfolio actions. Final assumption updates in the second half of 2024 could potentially lead to additional negative adjustments to the L&H ISR of up to €-0.1 billion by year-end 2024. Consequently, the L&H ISR in 2024 is expected to be significantly less than the €500 million indicated during the Q1 2024 results presentation. (Kenneth Araullo, 16/7/2024, Insurance Business UK, 'SCOR provides update on Q2 2024 results')

Aviva has strengthened its exposure management capabilities through a partnership with Symfos, utilising its exposure management software, Orchestra, to visualise risks and automate data processing. By implementing Orchestra, Aviva explains that it is now the first insurer to automate data uploads via straight-through processing. This advancement allows the insurer to record, report, control, and monitor exposures and potential risk accumulations efficiently. Since adopting Orchestra in 2021, Aviva has streamlined its portfolio roll-up process, reducing the time required by 60-70%. This efficiency enables the exposure management team to better analyse the portfolio and understand risk exposures. (Kenneth Araullo, 15/7/2024, Insurance Business UK, 'Aviva partners with Symfos to enhance exposure management')

Global insurer Tokio Marine Kiln (TMK) has announced a partnership with Kita, a carbon credit insurance specialist, to provide political risk insurance for developers and investors in carbon credit projects. The company noted that it is among the first in the Lloyd’s market to offer this type of policy, which aims to mitigate financial risks related to political instability affecting the sale and export of carbon credits. The new product, led by Ed Parker, Head of Special Risks at TMK, insures project developers and investors against risks such as confiscation, nationalisation, forced abandonment, license cancellation, and political violence. The cover will address losses should a host country revoke agreements that enable the credits to count towards external offsetting strategies. (Kenneth Araullo, 15/7/2024, Insurance Business UK, 'Tokio Marine Kiln announces major carbon credit projects partnership')

Mergers & Acquisitions

It was the “people first” approach that cemented a deal between JMG Group and Howe Maxted, an insurance agency based in Kent, according to the group. The agency will now sit alongside JM Glendinning Insurance Brokers’ 12 offices across the UK. Howe Maxted, which is run by Directors Graham Smith and John Maxted, has been helping clients for over a century. Although it joins the JMG Group, all the firm’s 14 staff will continue to operate from its Sidcup headquarters, headed by the existing leadership team. Commenting on the merger, Smith said the new setup will provide continuity for clients and the Howe Maxted team. He also said that it was a ‘people first’ approach that set JMG Group apart when it was looking for a new home for the business. (Noel Sales Barcelona, 19/7/2024, Insurance Business UK, 'JMG Group acquires Kent-based firm')

Movers

Ageas UK has announced the appointment of Aurore Lecanon as its new Chief Risk Officer (CRO), subject to regulatory approval. Lecanon will be replacing Evan Waks, who will move to Portugal as he assumes the position of new Chief Finance Officer in Ageas Portugal. The full switch will take place in September, the company said. Lecanon will bring to Ageas over two decades of experience in the financial services sector, working both in life and non-life insurance and investment banking. Before this, Aurore built a solid foundation as a finance expert, leading transformative change, modernising operating models, asset liability, and capital management. Lecanon started her career in risk and governance in 2015, building and leading top-performing risk teams, where she showed her capabilities in steering organisations amid demanding market conditions and complex regulatory challenges, the company said. (Noel Sales Barcelona, 18/7/2024, Insurance Business UK, 'Ageas UK introduces new chief risk officer')

AXA Commercial has appointed Gurinder Aulakh as Pricing Director and promoted Jean-Sébastien Lagacé to Reinsurance Director following an officer's retirement. Aulakh, who succeeds Jo Scott (who is retiring on 13th July), joins from Allianz, bringing over 20 years of experience, including roles at Zurich. Lagacé has been with AXA for 25 years, and will now lead the company's reinsurance efforts. (Noel Sales Barcelona, 18/7/2024, Insurance Business UK, 'AXA Commercial appoints two new leaders')

TransRe has announced two key promotions in its cyber division. The Berkshire Hathaway-owned reinsurer has tapped Tina Kališnik to Global Portfolio Leader, Cyber, and Diana Liu to US Cyber Underwriting Leader. Kališnik, who joined TransRe in 2016, has been praised by the company as integral in building the company’s European professional liability business and client base, with a particular focus on cyber exposures. Liu joined TransRe’s actuarial department in 2019 and later the US Professional Liability underwriting team in 2022. (Kenneth Araullo, 17/7/2024, Insurance Business UK, 'TransRe bolsters cyber division with key promotions')

Fortitude Re has announced the appointment of Greta Hager as Chief Financial Officer and Kai Talarek as Chief Growth and Optimization Officer, effective Aug. 17. Hager brings extensive experience to the position, having most recently served as Head of FP&A at MassMutual. Prior to that, she held leadership roles at AIG and Grant Thornton. Talarek, transitioning from his previous role as Chief Financial Officer, will assume the newly created position of Chief Growth and Optimization Officer. (Kenneth Araullo, 17/7/2024, Insurance Business UK, 'Fortitude Re bolsters executive leadership with dual appointments')

Global advisory, broking, and solutions company WTW has announced the appointment of three new hires to its international casualty team based in the London office, part of the direct and facultative global line of business. Sam Barnes joins WTW as a Director, having held broking roles at JLT and Marsh. CamillaChiatti, joining from Beazley, brings technical underwriting expertise and broad experience in Western Europe, will focus on the Latin American and European regions. Additionally, Parry Herbert returns to the team as an Associate Director focussing on the Canadian region, after more than 15 years, having spent much of that time at Aon. (Kenneth Araullo, 17/7/2024, Insurance Business UK, 'WTW appoints trio to bolster international casualty team')

Simon Brookes has been appointed as Gallagher’s new Financial Lines Chief, the company has announced. Brookes will report directly to Julian Wallers, CEO of Financial Risks, and will lead Gallagher Specialty’s management liability, cyber, financial institutions, and professional risks teams. Before he was appointed Financial Lines Head, Brookes served as Gallagher’s Managing Director of professional risks. He joined Gallagher in 2011 through the acquisition of Heath Lambert. (Noel Sales Barcelona, 17/7/2024, Insurance Business UK, 'Gallagher appoints new financial lines head')

Specialist insurance provider CFC has announced the appointments of Bryan Joseph and Oliver Corbett to its board of directors as Independent Non-Executive Directors. Corbett brings extensive experience in financial services. He is a Founder and Strategic Advisor at McGill and Partners, a boutique specialist insurance and reinsurance broker, and serves as a Non-Executive Director of HSBC UK and Allianz UK. Joseph has over 40 years of industry experience, having worked in senior actuarial roles internationally. He is currently a Partner at Vario Partners LLP, a Non-Executive Director of Lancashire Holdings Limited and its Managing Agency Lancashire Syndicates Limited, and the Senior Independent Director and Chair of the risk committee at Sabre Insurance Group. (Kenneth Araullo, 16/7/2024, Insurance Business UK, 'CFC strengthens leadership with new board appointments')

Vista Insurance Brokers Ltd has appointed Samuel Marriott as the Head of Vista Protect, the health and life insurance division. The brokerage highlighted this move in alignment with Vista's strategy to enhance sales growth, focusing on group life, health, and business survival insurance for its clients. Samuel Marriott joins Vista from Towergate Insurance, bringing over a decade of experience in the protection and health insurance sector. Marriott has established a strong reputation within the industry. (Kenneth Araullo, 16/7/2024, Insurance Business UK, 'Vista Insurance names new head of Vista Protect')

Chubb announced that Peter Kelaher has been appointed Division President of Continental Europe, Middle East, and North Africa. Kelaher, currently serving as Country President of Australia and New Zealand, will take on executive operating responsibility for 24 countries in the specified regions. Kelaher joined Chubb Australia in 2007 as a Senior Underwriter. Before his role as Country President for Australia and New Zealand, he held several senior positions in the region. Kelaher began his career as a Financial Lines Underwriter for a P&C insurance company in Australia. Kelaher will succeed Sara Mitchell, who will be leaving Chubb. (Kenneth Araullo, 16/7/2024, Insurance Business UK, 'Chubb appoints new division president for Continental Europe, Middle East and North Africa')

American International Group, Inc. (AIG) recently announced that Melissa Twiningdavis will assume the role of Executive Vice President and Chief Administrative Officer starting September 1, 2024. Prior to her upcoming role at AIG, Twiningdavis held several significant positions. She was at the helm of Global Supply Chain Operations at Accenture since January 2022 and formerly served as President at Precision Castparts Corporation, a subsidiary of Berkshire Hathaway. Her extensive experience also includes a 20-year tenure at General Electric, where she held various leadership roles, most notably as Vice President and Corporate Officer, handling Supply Chain and Sourcing for Europe. (Althea Javellana, 16/7/2024, Insurance Business UK, 'AIG selects new EVP and chief administrative officer')

Generali’s general counsel for its UK branch Matthew Dumbrell has been appointed as Chairperson of the International Underwriting Association’s (IUA) Legal and Regulatory committee and will be working with the IUA’s secretariat to set the group’s future agenda and lead discussions among members. Aside from Dumbrell, Dominic How, the General Counsel at HSB Engineering Insurance, a part of Munich Re, and Faye Ingham the Compliance Officer of reinsurance– UK branch SMF16 at Swiss Re, have also been appointed as Deputy Chairs to the committee. (Noel Sales Barcelona, 15/7/2024, Insurance Business UK, 'International Underwriting Association appoints new leaders for committee')